India declares drought as El Nino appears

August 6, 2012

India sees its first drought in last three years due to deficient Monsoon rains
As per India Meteorological Department (IMD) the El Nino weather pattern may reduce rains again in the second half of the June to September season.
India last suffered a drought in 2009, which forced it to import sugar that pushed global prices higher.
This time global grain prices are towering as the United States is also going the worst drought in the country in a half a century.
Monsoon rains are considered deficient if they fall below 90% of a 50-year average.
The monsoon is crucial for around 55 % of farmlands that do not have irrigation.

Impact on Gold and Silver:

India is one of the top consumers of precious metals. The deficient monsoon this year can impact rural incomes and may slash the demd for gold and silver.